Leveraging Relationships with Existing Customers to Increase ROI

Transcription

1 Leveraging Relationships with Existing Customers to Increase ROI Consumer Insights and Best Practices for Loyalty Marketing Max Kilger, Ph.D., Chief Behavioral Scientist Experian Simmons Sara Ezrin Sr. Director, Strategic Services, Experian CheetahMail Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian.

2 Experian Marketing Services: Data-driven predictive insights to increase revenue and customer loyalty We are marketing forward through predictive insights that improve how marketers target and engage their customers across both traditional and digital media. 2

3 The loyalist Engaging your best customers with programs that work 63% of organizations track customer lifetime value 72% see customer value increasing over time Yet, only 50% of organizations have a customer loyalty program 3

4 Agenda Loyalty programs consumer insights Loyalty programs in overview Loyalty program opportunities Building loyalty program membership Ongoing programming Trigger lifecycle communications 4

5 Shoppers want rewards Credit card rewards programs are increasingly popular Over 73 million Americans today have at least one affiliation/reward credit card, up from a low of 65 million a year ago. 59% Source: Experian Simmons 5

6 Chose your rewards Points and Cash Back rewards are most popular Points cards are continuously the most popular option, but hotel cards are the fastest growing rewards segment. 34% 29% 13% 4.5% Source: Experian Simmons 6

7 Brand loyalty Young consumers switch brands for variety Despite periods of fluctuation, young consumers are almost always the most likely to say they switch brands for the sake of variety and novelty. 19% 17% 15% Source: Experian Simmons 7

8 Coupon shoppers Coupons increasingly lure consumers to new stores 27% of all adults and 33% of online shoppers say that because of a coupon, they d be drawn to a store they don t normally shop. 33% 27% Source: Experian Simmons 8

9 Coupon shoppers Online shoppers are coupon users Consumers who shop online are more likely to use both digital coupons and print coupons from magazines, mail, newspapers, etc. 67% 61% 33% 22% Source: Experian Simmons 9

10 Opening and forwarding messages Promotions/coupons among most opened/forwarded s Consumers like receiving and sharing s with special promotions or coupons as well as information on new products or websites! Likely to open s with: Promotions/coupons 79% News stories 76% Links to websites 74% Info on new products or sites 69% Newsletters 69% Likely to forward s with: News stories 58% Promotions/coupons 54% Links to websites 54% Jokes 53% Info on new products or sites 47% Source: Experian Simmons 10

11 Your current and future customers rely heavily on usage continues to grow among all age groups Use last 30 days 70% 60% 50% 40% 30% 20% 10% 0% Age Source: Experian Simmons 11

12 Optimize loyalty segment response with loyalty content Loyalty program members engage more with program s Source: Experian CheetahMail 12

13 Benefits drive prospects to transact at a higher rate Leverage loyalty to increase membership and sales via Source: Experian CheetahMail 13

14 Loyalty integrates throughout the customer lifecycle Capitalize on rich customer data to engage your members USES Acquisition touch-points with loyalty members Program member benefits Company communications and customer service Up-sell/cross-sell 14

15 Define the biggest business opportunities Prioritize the messages with the highest ROI Source: Experian CheetahMail 15

16 Quality data enables targeting and acquisition Integrate loyalty with all customer acquisition points 16

17 Profile data drives program growth Efficiently advertise program benefits and sales by segment Non-members Members 17

18 Profile data drives program growth Dedicated s grab eyeballs 18

19 Maximize high value touch points to drive membership And, target members with offers to drive repeat sales Order confirmation performance highly exceeds bulk messages Total open rates of 150% Total click rates of 5% or more 2x the transaction rate 19

20 Members respond to special benefits Member exclusive s generate higher sales 20

21 Account statements report 9x higher transaction rates Capitalize on member engagement to cross-sell Member Number Account Status Program Benefits 21

22 Optimize member experience through lifecycle triggers Special content for members Promotional Promotion to meet requirements for a reward Promotion to reach next reward tier/level Personal reward redeemed thank you Recent purchase thank you Personal reward expiration notification Transactional Behavioral/ Demographic New member series outlining program benefits and driving a deeper relationship Birthday and/or anniversary Profile Update Personal reward achieved Reward statement Forgot Username / Password Program renewal notifications Inactive account Operational 22

23 Loyalty welcome s report 8x higher sales rates New members show a higher propensity to interact 23

24 Members are looking for rewards and coupons Recognize their achievements to drive conversions 24

25 Recognize long time members and birthdays Gain more loyalty and deepen relationships Highest performing subject lines: A special gift for your Birthday Happy Birthday %%FIRSTNAME%% Happy Birthday From [Company] Your Special Birthday Bonus. A special gift of 20% off for your Birthday Birthday/anniversary performance highly exceeds bulk messages Total open rates average 34.4% Total click rates average 5.6% 250% lift in transaction rates 25

26 Top customer deserve top service Customer experience, correlates to customer loyalty* 26 *Forrester Research

27 Things to remember Leave here with new loyalty strategies... - Gaining deep consumer insight can significantly improve loyalty-based marketing - Marketers should evaluate the interests of their customer base to determine the right reward for their audience - Loyalty s boost clicks, opens and revenue per - Account statements report 9x higher transaction rates - Recognize loyalty members with rewards and coupons 27

28 Stay connected Experian Marketing Services Follow us on Twitter : Experian.com/marketingforward 28

29 Contact information Sara Ezrin Director of Strategic Services Experian CheetahMail blog: Max Kilger, Ph.D. Chief Behavioral Scientist Experian Simmons

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